Wednesday, July 30, 2008

Gov. expresses support for local control

Otter chats about economy, LOT, tourism


By GREG STAHL
Express Staff Writer

Idaho Gov. C.L. "Butch" Otter discusses economy and tourism during an interview at Sun Valley Aviation in Hailey Monday afternoon. Otter was in the Wood River Valley to give a welcome address at the Ninth Circuit Judicial Conference, which is underway at the Sun Valley Inn this week. Photo by Willy Cook

Local control over local issues is something Idaho's governor said in a Monday interview he wholeheartedly supports.

"I really believe the extent you can give local government the tools that they need ... I'm a local option supporter," said Gov. C.L. "Butch" Otter. "I believe that to direct that out of Boise is a good thing."

Otter sat down Monday afternoon at Sun Valley Aviation in Hailey to discuss the Idaho economy and resort-town tourism. He was traveling to Sun Valley Resort to deliver a welcome address at the Ninth Circuit Judicial Conference, which is underway at the Sun Valley Inn this week.

Otter fielded questions about the ailing national economy and Idaho's place in it, about tourism and about local option taxation.

"Tourism is awfully important to Idaho," he said. "It continues to grow. It now surpasses mining and lumbering. In the scheme of the economy, a $47 billion economy that the state has, tourism is not only important (but) it's a non-consumptive use."

He said tourism is certainly in the state's top five sources of revenues.

"It's a good revenue source," he said. "It's a good employer and is something the legislature has been appreciative of."

The Idaho Legislature passed a local option sales tax for resort towns in 1979, and the city of Ketchum became the first Idaho municipality to enact such a tax several years later. Other resort cities have since passed similar taxes, but the allowance for local control has been a sometimes-controversial and sensitive topic in tax-weary, conservative Idaho.

Last winter a bill to allow for local option taxation to boost public transportation passed the Idaho Senate but failed in the House, where Otter said there was disagreement whether or not to pose the measure as a constitutional amendment or law.

Specifically regarding transportation issues Otter touted his $240 million plan to obtain federal bonds to boost Idaho's aging infrastructure.

"If I were successful you have to remember that $92 million would go to the local governments," he said.

That would afford a different form of local control, specifically that of providing local governments with funds from a source other than local taxation.

Going a step further, when posed with the question of whether Idaho should allow communities facing high real estate costs to enact local option taxes to subsidize deed-restricted community housing, Otter appeared open to possibilities.

"I'm not really sure what the answer to that is, but if the local government needs additional tools in their local government tool box then I think we ought to consider that," he said, pointing out that with transportation infrastructure and affordable housing issues the crux of the problem is the same. "The old days of $2,000 an acre are gone."

In the context of the overall U.S. economy, Otter said Idaho "can't help but be affected."

Practically every plant in Idaho is a merchant plant, whether technological or agricultural, and that means Idaho exports goods to consumers who are feeling the pinch. He pointed out that the state maintains $4.7 billion in international sales.

"When I became lieutenant governor (in 1987) it was $700 million," he said. Of that $500 million was agricultural.

He said he helped to boost that during his time as lieutenant governor to Gov. Cecil Andrus. From his position with J.R. Simplot, he had sold french fries in 82 countries. Those were contacts he said he brought to the governor's office.

Despite the rough economy Otter said Idaho looks good. State chartered banks are in good shape, and although the mortgage meltdown has impacted Idaho families and financial institutions the commercial building industry continues to show signs of strength.

"We're in very good shape," he said.




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